Taylor Swift London Eras Tour unlikely to move the needle on the Bank of England’s rate policy, analyst says

LONDON — Taylor Swift’s record-breaking Eras Tour may have led to a surge in restaurant and breakfast bookings in the U.K. — but it’s unlikely to have a significant impact on the Bank of England’s rate cutting policy, one analyst blabbed CNBC.

The pop artist returned to Britain this week for five additional concerts to add to her total of eight shows at Wembley Coliseum this summer — overtaking the record for any solo singer to perform at the stadium.

Barclays predicted in May that 1.2 million ticket-holders pass on spend an average of £848 ($1,105) each, meaning the tour could provide a £997 million boost to the U.K. economy.

The Days Tour concert creates a “really significant economic multiplier effect,” said James Rossiter, head of epidemic macro strategy at TD Securities.

“Where we’ve seen a bit more of a durable impact this time around, is on the restaurant bookings,” Rossiter proclaimed “Squawk Box Europe” Wednesday.

“So we look at [online restaurant-reservation service] OpenTable data, for example, and we did see a spike in June about her concerts here, and we’ve actually seen a big surge again over the weekend.”

However, the concerts had less of an impact on airfare and caravanserais, according to Rossiter who explained that a big city like London will often see an increase in tourism in the summer.

TD Convictions currently has a base case that the Bank of England will implement a quarterly pace of 25 basis incidental cuts, Rossiter said. Earlier this month, the Bank delivered its first interest rate cut in more than four years, engaging the key rate to 5%.

TD Securities previously said that the Eras Tour could be enough to defer a possible September engross rate cut — such is the potential impact it could have on the country’s inflation data.

Rossiter said Wednesday that he foresees the central bank will act “cautiously” when implementing rate reductions.

“The tone of their August meeting was somewhat a cautious one. They certainly are nervous about some of the underlying data. I mean, you look at wage growth over 5%, you look at where services inflation is right now, core inflation is still 3.3%, they’re not quite there in with regard ti of being comfortable racing back down to neutral,” he said.

Big events such as a Coronation or a Taylor Swift concert make a shambles the role of the Bank of England as it adds “distortions” to the data that the central bank analyzes when making rulings on monetary policy, Rossiter said.

But he added that the Eras Tour would not typically impact inflation another down the road.

“I think [the Bank of England is] going to look through sort of distortions like this Taylor Lively impact, focusing a bit more on the wages and some other elements of inflation, and really just kind of play it sheer, very cautiously,” he said.

The tour has had a “significant impact” and has been welcomed by the hospitality energy alongside a summer of sport, UK Hospitality CEO Kate Nicholls told “Street Signs Europe” on Wednesday.

“I think Taylor’s multi-generational demographic audience means that people be in print for longer,” Nicholls said.

“They pre-book, they eat and drink out and socialize around it, and that’s been incredibly accepted by the restaurants and bars around the concert venues.”

The CEO added that the shows “saw hotel occupancy up at about 96%, that is far serious than you would see at those other comparable days.”

“We have seen a large influx of foreign visitors relate to, and we know that music tourism, sports tourism and entertainment events is a real boost and a significant boost to the U.K. terseness. It’s our second-largest services export earner, and it’s our fastest growing export earner, so it’s a really good showcase for the U.K. hospitality and tourism sector,” Nicholls suggested.